On December 1, Watson Enterprises signed a $27,300, 60-day, 4% note payable as replacement of an account payable with Erikson Company. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

Multiple Choice

• $0

• $91

• $364

• $1,092

• $182

Reno contributed $101,000 in cash plus equipment valued at $40,000 to the RD Partnership. The journal entry to record the transaction for the partnership is:

Multiple Choice

• Debit Cash $101,000; debit Equipment $40,000; credit RD Partnership, Capital $141,000.

• Debit Cash $101,000; debit Equipment $40,000; credit Accounts Payable $141,000.

• Debit Cash $101,000; debit Equipment $40,000; credit Reno, Capital $141,000.

• Debit Reno, Capital $141,000; credit RD Partnership, Capital $141,000.

• Debit RD Partnership, Capital $141,000; credit Reno, Capital $141,000.

Farmer and Taylor formed a partnership with capital contributions of $210,000 and $260,000, respectively. Their partnership agreement calls for Farmer to receive a $74,000 per year salary allowance. The remaining income or loss is to be divided equally. Assuming net loss for the current year is $17,000, the journal entry to allocate the net loss is:

Multiple Choice

• Debit Income Summary, $17,000; Debit Farmer, Capital, $28,500; Credit Taylor, Capital, $45,500.

• Debit Income Summary, $17,000; Credit Farmer, Capital, $8,500; Credit Taylor, Capital, $8,500.

• Debit Taylor, Capital, $45,500; Credit Income Summary, $17,000; Credit Farmer, Capital, $28,500.

• Debit Income Summary, $17,000; Debit Taylor, Capital, $28,500; Credit Farmer, Capital, $45,500.

• Debit Income Summary, $17,000; Credit Taylor, Capital, $8,500; Credit Farmer, Capital, $8,500